What is speculative value implied by observed market price

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1. A stock trades for $80 has a book value per share of $36, analysts’ EPS forecast for year 1 is $16. The required return is 10%. What is the speculative value implied by the observed market price?

2. By the early of 2016, a firm had a book value per share (BPS) of $78, a ROCE of 16% for 2016. If the required return is 8%, what is the Residual earning for 2016? *please provide workings/ formulas

3. A stock trades for $91 has a book value per share of $33, analysts EPS forecast for year 1 is $14. The required return is 13%. What is the speculative value implied by the observed market price? *please show workings.

Reference no: EM132012558

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